Sam Bankman-Fried, the founder of FTX, has been accused of sanctioning fraud by Caroline Ellison, the CEO of Alameda Research. Ellison confessed to committing fraud under the instructions of Bankman-Fried, setting up a system to funnel money out of FTX. This system allowed Alameda Research to secure $14 billion from FTX, while manipulating the balance sheet to hide the true financial status of the company. Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal charges and may give up their earnings from Alameda and FTX as part of a settlement. They would also be banned from dealing with securities. The collapse of FTX and the Terra ecosystem has had a significant impact on the crypto market, leading to increased scrutiny of the industry by regulatory agencies. Bankman-Fried has maintained his innocence and pleaded not guilty to fraud and conspiracy charges. The trial is expected to last up to six weeks.

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Information	Details
Geography	North America
Countries	🇧🇸
Sentiment	negative
Relevance Score	1
People	Sam Bankman-Fried, Judge Lewis Kaplan, Gary Wang, Gary Gensler, Caroline Ellison
Companies	FTX, Metropolitan Detention Center, Alameda Research, New York Times, SEC
Currencies	Bitcoin, FTX, Ethereum
Securities	None